2013 Fiat 500 Sport on 2040-cars

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Why a Renault-FCA merger could be good news for Nissan, Mitsubishi

TOKYO — Nissan's advanced technologies including platforms and electric powertrains could give it leverage in a merger involving Renault and Fiat Chrysler, thanks to a royalty system it has with the former, two people with knowledge of the matter said. A merged Renault-Fiat Chrysler could face an extra hurdle each time it uses technology developed by Nissan or Mitsubishi Motors, while the two Japanese automakers stand to gain a client in Fiat Chrysler (FCA), one of the people said. Both sources declined to be identified because of the sensitivity of the matter. Nissan's technology, particularly in electrification and emissions reduction, could give it some sway in the $35 billion potential tie-up between Renault and FCA, even as its stake in the newly formed company would be diluted. Currently Renault SA pays less for technology developed by Nissan than the Japanese automaker pays for French technology, a third person said. This has long been a sticking point for Nissan, and an area where Nissan could seek more favorable terms. "Whenever Nissan transfers platform, powertrain or other technology to Renault, there is a margin or royalty which Renault has to pay for use of that tech," one of the people said. "In that sense, FCA, if everything went well, would become another 'client' of ours and that's good. More business for us." A Nissan spokesman declined to comment on its royalty system. The potential Renault-FCA deal has complicated the Japanese automaker's already uneasy alliance with Renault. A further deal with Fiat Chrysler looks likely at least in the near term to weaken Nissan's influence in the 20-year-old partnership. Renault owns a 43.4% stake in Nissan and is its top shareholder. Nissan holds a 15% non-voting stake in Renault and would see that diluted to 7.5% after the FCA deal, albeit with voting rights. The imbalance between the two has long rankled Nissan, which is by far the larger company. Alliance imbalance Renault had previously angled for a merger with Nissan but has been rebuffed by CEO Hiroto Saikawa. Securing benefits from the merger deal will be important for Saikawa, who is grappling with poor financial performance while he struggles to right the company after the ouster of former chairman Carlos Ghosn last year.

Judge refuses to reconsider GM lawsuit against Fiat Chrysler

A federal judge in Detroit said Friday that he will not reconsider his July dismissal of General Motors’ racketeering lawsuit against Fiat Chrysler Automobiles. U.S. District Judge Paul Borman wrote in an opinion that new evidence presented by GM regarding bribes and foreign bank accounts “is too speculative to warrant reopening” the case. Borman also ruled that the earlier dismissal of the case was not done in legal error. GM alleged that FCA used foreign bank accounts to pay bribes to former United Auto Workers Presidents Dennis Williams and Ron Gettelfinger, as well as Vice President Joe Ashton. It also alleges that money was paid to GM employees including Al Iacobelli, a former FCA labor negotiator who was hired and later released by GM. GM said the payments were made so the officials would saddle GM with more than $1 billion in additional labor costs. “Even if the affidavits establish that these foreign bank accounts exist, that fact does not rise to the inference advanced by GM, that FCA was more-than-likely using the bank accounts to bribe UAW officials,” BormanÂ’s order stated. GM said Friday that it would appeal BormanÂ’s ruling to the Sixth Circuit Court of Appeals. “TodayÂ’s decision is disappointing, as the corruption in this case is proven given the many guilty pleas from the ongoing federal investigation,” GM said in a statement. “GMÂ’s suit will continue — we will not accept corruption.” FCA lawyers wrote in court documents that allegations it bribed union officials are “preposterous” and read like a script from a “third-rate spy movie.” Gettelfinger denied the allegations in a statement and said he had no foreign accounts. WilliamsÂ’ California home was raided by federal agents but he has not been charged. Iacobelli, who is awaiting sentencing in the federal corruption probe, also denied the claims. “Judge BormanÂ’s ruling this morning once again confirms what we have said from the beginning — that GMÂ’s lawsuit is meritless and its attempt to submit an amended complaint under the guise of asking the court to change its mind was nothing more than a baseless attempt to smear a competitor that is winning in the marketplace,” FCA said Friday in a statement. Related Video: Government/Legal Chrysler Fiat GM

The Fiat 500X packs 2.4 liters of disappointment

Our long-term 2016 Fiat 500X is a fine little crossover that's nearly undone by a underwhelming and often frustrating powertrain. The 2.4-liter naturally aspirated four-cylinder/nine-speed automatic combo can be found in a number of FCA products. In every single application I've used this engine, the takeaway has been the same: It's a boat anchor. I like our 500X, I really do. I haven't spent as much time behind the wheel as I would like, but I've put thousands of miles on its platform twin, the Jeep Renegade, and two vehicles are essentially the same underneath. The Tigershark 2.4-liter makes 180 horsepower and 175 lb-ft of torque, good numbers on paper, but in practice the engine is buzzy and slow to rev. The engine feels dated. In contrast, the base 1.4-liter turbocharged engine feels much more lively despite being down 20 horsepower. The low-end grunt is owed to the 9 additional pound-feet of torque the engine makes over the 2.4-liter. It may not match it on the top end, but not many people are running a 500X to redline. The issue I have is that the 2.4-liter is the only available option on the higher-spec models like our Trekking Plus, so if you want some options you're stuck with this engine. The 2.4-liter is exclusively paired to a 9-speed automatic transmission that's built by ZF. As great as some of ZF's other gearboxes are, this 9-speed is varying degrees of bad in every application that I've used it, including the Honda Pilot, Acura TLX, and Jeep Cherokee and Renegade. Shifts can be abrupt, and the manic transmission is constantly hunting in an effort to find the most fuel-efficient gear. More than once I've been left waiting for a kick down in order to move with some gusto. Don't let my harping about the powertrain warp your vision of the 500X. It's a fun little vehicle and arguably Fiat's best product (the 124 Spider is mostly Mazda), but it's frustrating when a pleasant little crossover is brought down by such a lackluster powertrain, made worse by knowing the 1.4-liter is so much better. There's an easy fix, Fiat: Offer the 1.4-liter in all engine trims. And to be fair, it's almost kind of fun around a racetrack. See the video below. Related Video: